More consumers have been able to have their disputes heard by the Financial Ombudsman Service (FOS) since it agreed to hear cases above its defined monetary limits from January this year.
These complaints relate to financial services providers.
In the past, consumers who had a life insurance related claim above $280,000 or an investments related claim above $150,000 were not able to have their disputes resolved through FOS, FOS investments, life insurance and superannuation ombudsman Alison Maynard said.
She said while consumers could still only claim up to $280,000 for a life insurance matter or $150,000 for an investments matter, anyone who had a claim of up to $500,000 could still have their dispute heard by FOS if they chose to do so.
“In the three months to 30 April 2009 we had to reject 35 cases from consumers due to their claims being above the monetary limits, whereas this year we’ve only rejected one case in that same three-month period,” Maynard said.
Since FOS had agreed to hear life insurance and investments claims of up to $500,000, Maynard said the business was busier and continuing to employ new staff, particularly since disputes had ballooned in 2008 and had not returned to more normal levels since then.
“We still encourage financial services providers to ensure their internal dispute resolution facilities are sufficiently resourced, as this can save a lot of issues being escalated to FOS or the court systems,” she said.
FOS had increased its staff numbers by roughly 30 per cent over the last 12 to 24 months and also had plans to move to larger premises in due course, Maynard said.
